For which regression assumption does the Durbin-Watson statistic test?
A) Linearity
B) Independence of errors
C) Homoscedasticity
D) Multicollinearity

Question

Quizplus · Accepted Answer

The Durbin-Watson statistic tests the assumption of independence of errors in linear regression. It checks whether the residuals are independent or not. A Durbin-Watson statistic value between 1.5 to 2.5 indicates no significant autocorrelation between the residuals, which means the assumption of independence of errors is not violated. Thus, option B is the best choice.

For Which Regression Assumption Does the Durbin-Watson Statistic Test